Home Daily Analysis Charts / Trade Ideas Gold Bounces Off to Test Resistance – Quick Trade Setup!

Gold Bounces Off to Test Resistance – Quick Trade Setup!

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On Wednesday, the yellow metal gold prices are still stable in Asia, consolidating in a thin trading range of 1275 and 1270. It looks like traders are trading very carefully over the latest news on the Sino-U.S. trade front.

On the other hand, there was a minor change in the greenback on Wednesday but on the other side British pound boosted demand after U.K. Prime Minister Theresa May presented a “new” Brexit deal. Whereas, the U.S. dollar index that follows the greenback against a basket of other currencies was unchanged at 97.868.

Technical Outlook – GOLD
The $1,269 has become a major trading level in terms of future price action when it comes to gold as it symbolises a significant threshold that if breached, could lead to a major sell-off.

 

So far, we haven’t seen gold trade below its 200-day moving average since late last year. Which makes me wonder what if the 200-day moving average, which right now is coming in around $1,258 is a major level for gold.

Other critical levels to watch when it comes to gold are $1,263 and $1,258,

R3: 1287.92
R2: 1280.79
R1: 1277.74
Key Trading Level: 1273.66
S1: 1270.61
S2: 1266.53
S3: 1259.4

Gold – Trade Tip
The investors will closely be monitoring the FOMC later today during the US session before determining the swing positions. Thus, consider staying bearish below 1272 and bullish above the same level to target quick 40 green pips. All the best!

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